1. Field of the Invention
The present disclosure relates generally to financial transactions and more particularly to a system and method for conducting a gift value transaction.
2. Related Art
In direct (face-to-face) or online financial transactions customers search for and purchase products and/or services from a merchant. In the case of online shopping, transactions are conducted through electronic communications with online merchants over electronic networks, such as the Internet. During the course of these transactions, customers may provide payment for products and services. In this regard, the products and services may be purchased for use by the customer. Alternatively, in a gift value transaction the products and services may be purchased by the customer and given as a gift item or a gift card that may be redeemed for products and services from the merchant that issued the gift card.
In one gift value transaction scenario, a customer purchases a gift item, a shirt for example, from a merchant directly or via a merchant's online website. The customer provides information relating to the intended gift recipient, such as the person's name and address, to the merchant and the gift item (shirt) is shipped directly or indirectly by the merchant to the intended gift recipient.
In another gift value transaction scenario, a customer purchases a gift card from a merchant directly or via a merchant's online website. The gift card or certificate is then presented or mailed to the intended gift recipient. Generally, the gift card recipient or gift card holder may apply the value of the gift card to any (item) product or service offered by the merchant issuing the gift card. If the value of the item purchased with the gift card is greater than the value of the gift card (overage), the card holder pays the difference. If the value of the item purchased is less than the value of the gift card (underage), the amount remaining on the gift card may generally be applied to another item(s) from the same merchant.
However, as is often the case, the gift recipient may be given a gift item that does not fit or that the gift recipient does not want for one reason or another. Absent the option of keeping the ill-fitting or unwanted gift item, the gift recipient must return the gift item to the online merchant to receive a substitute gift item, i.e., a shirt of the appropriate size or a different gift item. However, returning a gift item for exchange or substitution to a merchant is, among other things, often difficult, inconvenient, and time consuming. For online transactions, additional shipping costs mean that gift returns incur a higher expense for either the merchant or the gift recipient.
Likewise, a gift card recipient may be in possession of a merchant's gift card whose products or services are unwanted by the gift recipient. However, since the gift card was purchased through a particular merchant, if the gift card is to be redeemed, the gift card recipient is limited to redeeming the gift card with that particular merchant.
Accordingly, there exists a need for an improved system and method for conducting a gift value transaction.